White House & Policy - February 26, 2026 (Morning)

 ## Policy Overview The administration overnight emphasized a continued focus on advancing artificial intelligence (AI) development while maintaining regulatory oversight. A key executive order was issued to promote responsible AI innovation, mandating federal agencies to coordinate on AI safety standards and data privacy protections. This directive aims to balance fostering technological leadership with mitigating risks associated with AI deployment. Additionally, the president reiterated support for trade policies that protect domestic industries, signaling a cautious stance on tariff rollbacks despite recent Supreme Court rulings limiting presidential tariff authority. The administration is expected to engage with Congress on infrastructure and technology funding bills, with hearings scheduled today to discuss AI regulation and semiconductor supply chain resilience. Market sentiment ahead of the open is cautiously optimistic, buoyed by the administration’s balanced approach to AI and technology policy. However, uncertainty remains around trade policy direction and potential legislative gridlock on key funding measures. ## Market Impact Pre-market futures reflect mixed reactions to policy developments. Technology sector futures are up, with the Nasdaq 100 futures rising 1.45%, driven by optimism around the administration’s AI executive order. The S&P 500 and Dow Jones futures are also higher by 0.95% and 0.87%, respectively, indicating broad market confidence. Financials are outperforming in early trading, with the Financials ETF (XLF) up 1.91%, likely benefiting from anticipated regulatory clarity and potential infrastructure spending. Conversely, Energy sector futures are down, with the Energy ETF (XLE) declining 1.27%, pressured by the administration’s continued emphasis on emissions regulation and pipeline scrutiny. The U.S. dollar is slightly weaker, with the UUP ETF down 0.17%, reflecting some risk-on sentiment. Long-term Treasury bonds are stable, with the 20+ Year Treasury ETF (TLT) up marginally by 0.03%. Oil prices are under pressure, falling 2.85%, influenced by geopolitical tensions and ongoing U.S.-Iran nuclear talks. ## Winners & Losers ### Potential Winners **$NVDA** - The AI-focused executive order supports Nvidia’s leadership in AI chips and data center growth, reflected in a 2.16% pre-market gain. **$CRM** - Salesforce benefits from the administration’s AI innovation push and scheduled congressional hearings on AI regulation, with shares up 2.07%. **$BAC** - Financials rally on expectations of regulatory clarity and infrastructure spending, with Bank of America up 2.66%. **$KLAC** - Semiconductor equipment makers like KLA Corporation stand to gain from supply chain resilience initiatives, shares up 2.88%. **$UNH** - Healthcare technology and data analytics firms benefit from regulatory focus on innovation, with UnitedHealth up 4.22%. ### Potential Losers **$XOM** - Energy companies face headwinds from emissions regulation and pipeline scrutiny, with ExxonMobil down 1.14%. **$CVX** - Chevron shares decline 1.56% amid ongoing environmental policy pressures. **$AI** - C3.ai stock is down sharply 22.53%, possibly reflecting investor concern over AI regulatory risks despite the administration’s balanced stance. **$ARRY** - Array Technologies, a solar energy firm, falls 23.21%, potentially impacted by mixed signals on renewable energy subsidies. **$TTD** - The Trade Desk drops 13.79%, possibly due to uncertainty around digital advertising regulation in the AI context. ## Sector Exposure - **Technology:** The administration’s executive order on AI and scheduled congressional hearings create both opportunity and regulatory risk for AI and semiconductor firms. The sector shows strong pre-market gains, led by chipmakers and software companies. - **Financials:** Regulatory clarity and infrastructure spending prospects are boosting financial stocks. The sector ETF (XLF) is up 1.91%, reflecting optimism. - **Energy:** Environmental regulations and pipeline approvals remain a drag on energy stocks, with the sector ETF (XLE) down 1.27%. Oil prices are also declining amid geopolitical concerns. - **Healthcare:** Incremental policy support for healthcare innovation and data analytics is providing modest upside, with the healthcare ETF (XLV) flat to slightly up. ## What to Watch Today - Congressional hearings on AI regulation and semiconductor supply chain resilience. - Scheduled remarks by the president on technology innovation and trade policy. - Market reaction to ongoing U.S.-Iran nuclear talks impacting oil prices. - Key levels in AI-related stocks such as **$NVDA**, **$CRM**, and **$AI**. - Potential legislative developments on infrastructure and technology funding bills. --- This briefing highlights the administration’s balanced approach to AI innovation and regulatory oversight, which is driving technology sector gains. Financials are buoyed by infrastructure spending prospects, while energy stocks face pressure from environmental policies. Trade policy uncertainty and geopolitical risks remain key market risks today.